Yup, prices are up year over year for December at an adjusted rate of 1.6%, which seems kind of low, but it is still up from last month, which is not good (last month it was only 1.4%). Hmmm… this is not a good thing I think.
Inflation is one of those words that we older folks cringe at hearing and scares the living be-jumblies out of me, since I remember the inflation of the late 70’s and what it did to the economy. I am not saying we are heading into an inflationary spiral, yet, however, we need to watch the price index closely.
The biggest increase in our basket of goods was in the area of Shelter, or home costs. Home prices and home renovations continue to increase by 3.8%, and food is up 2.2% as well. Shockingly, alcohol and tobacco costs are up as well (those sin taxes kicking in, I guess) 3.2%.
My kids will be happy that their clothing and footwear have actually dropped in price over that period.
Our ever shrinking buck.
Follow On
This was actually the first article I wrote about Inflation and the CPI. I didn't write about it again in February 2007.
Inflation and CPI for 2007
- Consumer Price Index Up! December 2006 - First time I wrote about this topic.
- Inflation at 1.2% in Canada for January 2007
- So much for the good news… CPI for February 2007
- May 2007 Inflation: Steady at 2.2%
- Inflation Steady at 2.2% for June 2007
- Inflation and CPI Under Control For July 2007
- Inflation at 1.7%, Holy Cow! August 2017
- Flash: Inflation in September at 2.5%
- CPI for October 2007 at 2.4%
- Inflation at 2.5% Core Inflation still in check? November 2007
- Last Year’s Inflation 2007 Officially 2.2%
